Investing.com – Apple (NASDAQ:AAPL) continued its ride higher into record territory Monday after DA Davidson hiked its price target on the tech giant amid expectations it will roll out 5G iPhones later this year.
DA Davidson raised its price target on Apple (NASDAQ:AAPL) to $375 from $300, forecasting a near-20% rise from current prices. Apple rose about 0.9% after hitting an intraday record high of $313.38.
With the iPhone maker expected to release 5G featured phones later this fall, DA Davidson analyst Tom Forte said: "there is enough complexity and hype when it comes to 5G that we believe Apple can exploit this multi-year opportunity."
This year’s iPhones are expected to come in new sizes, one with a 5.4-inch display, two with a 6.1-inch displays and one with a much larger 6.7-inch screen.
Apple's run to all-time highs has been supported by a slew of recent upgrades from Wall Street.
Just last month, Bank of America (NYSE:BAC) raised its price target on Apple, estimating that 5G iPhones will drive consistent 200 million iPhone sales during 2020 to 2022. The bank also highlighted the continuing strong demand for the existing iPhones that were unveiled in September last year.
The upcoming launch of Apple's 5G iPhone has been touted as an important upgrade cycle as the tech giant's most recent slate of smartphones has not generated the fanfare and record sales that were once commonplace.
Some on Wall Street have suggested investors temper their expectations for the pace of 5G adoption.
"Ultimately, this is a massive opportunity for Apple (NASDAQ:AAPL), huge play on 5G, but it’s going to take a while for networks to roll out coverage," Gene Munster, co-founder of research-driven venture capital firm Loup Ventures, said in December.
Those claims were backed up somewhat by TF International Securities analyst Ming-Chi Kuo, who said that countries with little to no 5G coverage will receive phones with 5G disabled to save on manufacturing costs.
Ming-Chi Kuo forecasts that Apple will sell between 80 and 85 million iPhones that feature 5G connectivity.